The Future of PRSAs in Ireland for Limited Company Directors

New rules and updates have made a big difference in PRSA in Ireland lately. These changes will affect how people and businesses plan for retirement. As a director of a limited business or a financial advisor, it’s important to know about these changes and how they will affect people in the future. This detailed guide goes into great detail about the new pension changes and how they affect directors of limited companies. It also gives you smart advice on how to make your financial planning better.

PRSA Ireland

Overview of Pension Changes in 2024

The year 2024 marks a turning point for PRSA in Ireland. Here’s a breakdown of the key changes:

  • Increased Contribution Limits: The most that individuals can put into their Personal Retirement Savings Accounts (PRSAs) each year has been raised by a large amount. Making this change lets you save more for retirement.
  • Employer Contributions: Employers can now put as much money as they want into their workers’ PRSAs without having to worry about Benefit in Kind (BIK) taxes. Limited Company Directors have a great chance to increase their retirement savings with this..
  • A plan for automatic enrollment is coming up: An Auto-Enrolment (AE) system that everyone must use is set to start in 2025. As a result of this plan, workers will be immediately registered in a workplace pension scheme. This will further encourage them to plan their finances for the future.

One of the key dates to mark on your calendar is April 1st, 2024, when the standard fund limit for the tax-free lump sum on retirement increased from €200,000 to €330,000. Also, the largest amount of tax-free pension funds that can be used when retiring has been raised from €2 million to €2.5 million. This gives people with large pension pots more options.

Significant Changes to PRSAs in 2023

Personal Retirement Savings Accounts, or PRSAs, have changed a lot since 2023. Take a closer look at the changes and how they affect directors:

  • Employer Contributions and BIK Relief: In the past, when a company put money into an employee’s pension, the person had to pay BIK taxes on it. This tax burden is no longer there for employers who contribute to PRSAs in Ireland, though, thanks to recent changes. This means that directors will save a lot of money and your company will be able to make bigger payments.
  • Increased Contribution Flexibility: Significantly higher payment amounts for PRSAs have been made available, letting you save more for your retirement. This gives you the freedom to make contributions that fit your personal financial goals and level of comfort with risk.

Impacts on Limited Company Directors

As a Limited Company Director, the new rules for PRSA in Ireland are very helpful:

  • Enhanced Tax Relief: Your personal PRSA contributions may be eligible for considerable tax savings. In other words, some of your payments are taken out of your taxable income, which lowers your total tax bill.
  • Unlimited Employer Contributions: Your company can now give as much as it wants to your PRSA without it having any effect on your BIK tax. Take advantage of this great chance to save a lot more for retirement through workplace donations.
  • Greater Control: PRSAs give you a lot of control over your retirement savings. You can pick the investment funds you want to use and make sure your investment plan fits your risk tolerance and retirement goals.
prsa tax relief

Auto-Enrolment Scheme Rollout

While the PRSA changes have already happened, the Auto Enrolment (AE) plan is set to start rolling out gradually in 2025 and is expected to be a big event in the near future. The goal of this government-mandated programme is to get more people into pension plans and get workers, including owners of limited companies, to save for retirement.

Employers who are qualified under the AE plan will have to automatically enrol eligible workers in a qualifying pension scheme and make needed payments on their behalf. Details like payment rates and specifics are still being worked out, but it’s important for directors to know how this new system might affect their current pension plans and make changes as needed.

Advantages and Limitations of PRSAs for Directors

PRSAs have some benefits for directors, but it’s also important to know what they can’t do:


  • Tax Relief: As mentioned earlier, you can receive significant tax relief on your PRSA contributions, lowering your tax burden.
  • Flexibility: Personal Retirement Accounts (PRSAs) provide a great deal of freedom in terms of contribution levels, investment alternatives, and withdrawal procedures. You can change your PRSA in Ireland to fit your wants and situation.
  • Employer Contributions: Your company can put as much money as it wants into your PRSA without worrying about BIK rules. This lets your retirement savings grow significantly.


  • Investment Responsibility: When you have a PRSA in Ireland, you are the only one responsible for investing, unlike some employer-sponsored pension plans. You will need to do some research and pick financial funds that are right for you.
  • No Employer Matching: Unlike some workplace pensions, employers aren’t obligated to match your PRSA contributions. But the new rules that let employers make as many contributions as they want without affecting BIK give directors a good reason to talk to their companies about these donations.

Strategic Pension Planning Tips

To get the most return on your investment, take the following into consideration:

  • Maximise Contributions: Take advantage of the increased contribution limits for PRSAs. Talk to a financial advisor about how much to put into your retirement account based on your age, income, and retirement plans.
  • Use Employer Contributions: Discuss the possibility of employer contributions to your PRSA with your company’s financial team. Because employers can now make payments without having to pay BIK, this is a great way to save a lot more for retirement.
  • Invest Wisely: Since PRSAs place investment responsibility on you, choose your investment funds carefully. Consider your risk tolerance, investment timeframe, and desired returns when selecting funds. Diversifying across a number of different types of assets is a key way to lower risk.
  • Review Regularly: Review your pension plan and how you plan to contribute often. You may need to change how much you contribute or what investments you make as your income, risk tolerance, and retirement date change.
  • Seek Professional Advice: Talking to a licensed financial expert at Around Finance can be very helpful. We will assist you in making a unique pension plan that fits your unique financial objectives and level of risk tolerance.

Ireland’s recent changes to pensions have opened up new ways for limited company owners to plan for their retirement. By learning about these changes, especially the changes to the PRSA and the new Auto Enrolment system, you will be better able to make choices that will help you reach your financial goals.

We’re proud to be on the cutting edge of these changes. We help our clients reach their retirement goals by giving them expert advice and new ideas. Our team of experienced financial advisors is committed to keeping you updated and giving you the tools you need to handle the changes to your pension with confidence and clarity.


Increased contribution limits and employer contributions without BIK tax implications for directors.

You get tax relief on contributions, potentially much higher retirement savings through employer contributions, and more control over investment choices.

You should review your current pension plans, assess the impact of the new regulations, consult with the team at Around Finance, and make necessary adjustments to your pension strategies to maintain compliance.

Yes, understand Auto-Enrolment rules and how it impacts current pension strategies when implemented in 2025.

No, employers can contribute unlimited amounts without triggering BIK tax for you under the new rules.

The Revenue Commissioners website (https://www.revenue.ie/)  provides official information on pension regulations.

Still got questions? Let us know what you’re looking for.

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